‘Obscene’ cost to fight LGC case sparks new controversy

Thursday

Oct 27, 2011 at 9:55 AMOct 27, 2011 at 9:57 AM

CONCORD — When a Bureau of Securities Regulations lawyer told the Herald “there’s something obscene about two government-funded agencies involved in litigation, with taxpayers paying both sides,” it led to a closed-door meeting and, reported N.H. Public Radio, an attempt to restrict the speech of state officials.

Elizabeth Dinan

CONCORD — When a Bureau of Securities Regulations lawyer told the Herald “there’s something obscene about two government-funded agencies involved in litigation, with taxpayers paying both sides,” it led to a closed-door meeting and, reported N.H. Public Radio, an attempt to restrict the speech of state officials.

The “obscene” comment was made by BSR attorney Earle Wingate III to the Herald last Friday when Wingate estimated the Local Government Center will spend $1 million “or better” on lawyers to defend itself against BSR claims alleging it skimmed and mismanaged $100 million of insurance money.

Two days later, both parties met for a hearing when, reported NHPR, “LGC attorney Bill Saturley asked presiding officer Donald Mitchell to restrict lawyers from speaking to reporters.” NHPR reported the non-public discussion was in response to the Herald’s story and that the hearings officer denied Saturley’s request to restrict Wingate’s access to the media.

Saturley said Wednesday he did not seek a gag order and was “disappointed” that someone who participated in the closed hearing “blabbed about it.” He said he would always be available to comment about public matters pertaining to the ongoing LGC case, but added, “this was off the record.”

Saturley said state law allows for non-public conferences during administrative hearings like those being conducted by the BSR. He said the law cites eight reasons to allow non-public conferences, with the eighth being to discuss “any other matter” that contributes to prompt, orderly and fair proceedings.

He said he would not comment further.

Similarly, Wingate said he couldn’t comment about the off-the-record controversy.

Wingate filed a 4-count complaint against the LGC alleging breaches of corporate law, financial impropriety and his demand that $100 million be returned to funding entities which include taxpayers, public employees and retirees. The LGC was formed as an insurance pool for cities and towns to achieve favorable rates for employees’ health coverage and property liability claims.

The BSR alleges the LGC owes the funding entities refunds for money spent for non-insurance purposes and skimmed to fund a worker’s compensation program. Portsmouth is the largest municipal LGC contributor, paying 1.4 percent of the total pool.

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